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While the International Association for Energy Economics (IAEE) makes every effort to ensure the veracity of the material and the accuracy of the data therein, IAEE is not responsible for the citing of this content until the article is actually printed in a final version of Economics of Energy & Environmental Policy. For example, preprinted articles are often moved from issue to issue affecting page numbers, and actual volume and issue numbers. Care should be given when citing Economics of Energy & Environmental Policy preprint articles.

Economics of Energy & Environmental Policy
Volume 11, Number 2

Model-Based Evaluation of Decentralised Electricity Markets at Different Phases of the German Energy Transition

David Ritter, Christoph Heinemann, Dierk Bauknecht, Christian Winger, and Franziska Flachsbarth

DOI: 10.5547/2160-5890.11.1.drit
No Abstract

Should the EU ETS be Extended to Road Transport and Heating Fuels?

Michael G. Pollitt and Geoffroy G. Dolphin

DOI: 10.5547/2160-5890.11.1.mpol
View Abstract

This paper considers the current proposal to extend the EU ETS to cover CO2 emissions from the combustion of heating and road transport fuels. We argue that increased coverage of the EU ETS, together with a binding cap consistent with a net zero trajectory, would provide an EU-wide quantity backstop ensuring that the EU's cumulative emissions budget constraint is satisfied. As such, working alongside standards-based policies currently enacted in the covered sectors, it has the potential to (i) enhance environmental effectiveness by providing an intertemporal incentive for additional emissions reduction and (ii) enhance the (cost) efficiency of EU-wide climate policy by ensuring that no low-cost emissions reduction is left unexploited. Distributional implications remain a serious challenge to such an extension, but several mechanisms are available to alleviate them.

Decision Framework for Selecting Flexibility Mechanisms in Distribution Grids

Fernando-David Martín-Utrilla, José Pablo Chaves-Ávila, and Rafael Cossent

DOI: 10.5547/2160-5890.11.2.fmar
No Abstract

Impact of Japanese House Insulation Subsidy System on Home Owners' Energy-Saving Awareness

Mieko Fujisawa and Mika Goto

DOI: 10.5547/2160-5890.11.1.mfuj
View Abstract

Achieving the massive target of reduction in carbon dioxide emissions in the household sector requires that consumers be made aware of this issue. If consumers update their energy-saving awareness and related behaviors, the energy-efficiency effect can be expected to continue. For this purpose, this study analyzes the indirect effects of the housing eco-points system subsidy on consumers in Japan. We collected data using a questionnaire survey of consumers who used the subsidy system and performed a logistic regression analysis. The results revealed the following factors exert a positive effect on energy-saving awareness: realization of insulation-performance effect, understanding of insulation and energy conservation standards, experience of the environmentally concerned, timely receipt of the subsidy, and the self-declaration system. Further, the results showed that, when consumers are exposed to the learning effects through experience and understanding, they become more conscious of energy conservation. This indicates that the housing eco-points subsidy had indirectly affected energy saving. This study can provide policymakers with useful guidance in policymaking and institutional design, and another method for reducing carbon dioxide emissions to maximize the use of limited resources amid financial constraints.


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